New York, NY – US stock futures saw a rise on Friday due to a decrease in inflation, as investors also digested the aftermath of the recent Biden-Trump debate. The S&P 500 futures surged by approximately 0.3%, moving closer to its record high, while Nasdaq 100 contracts climbed by 0.4%. Meanwhile, Dow Jones Industrial Average futures remained steady.
Investors are looking forward to a positive end to a turbulent week that witnessed the S&P 500 and Nasdaq Composite bouncing back from a three-day losing streak. Despite a strong first half of the year for stocks, concerns about a potential pullback in the market for the remainder of the year have emerged.
The latest report on the Federal Reserve’s preferred inflation measure indicated a slowdown in inflation in May, with prices rising at their slowest pace since March 2021. The core Personal Consumption Expenditures index, closely monitored by the Fed, rose by 0.1% in May, meeting expectations on Wall Street.
In light of the upcoming US election in November, investors are now paying attention to President Joe Biden’s underwhelming performance in the recent debate against Donald Trump. Trump’s proposed policies on tax cuts and trade restrictions are seen as beneficial for stocks, as evidenced by the surge in Trump Media & Technology Group shares during pre-market trading.
Market watchers are also monitoring any signs of weakening consumer resilience, as several key companies have provided less optimistic sales forecasts. For instance, Nike stock plummeted by almost 15% in pre-market trading, while Walgreens shares remained under pressure following a significant drop the day before.
As the stock market continues to navigate through various challenges and uncertainties, including political events and economic indicators, investors remain cautious about the future trajectory of the market. The impact of these factors on different sectors and companies will be closely monitored in the coming days and weeks.